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June 30 Deadline Looms for House Buyers

The next few weeks are crucial for home buyers; including the many that I represent who need to close on a house before the end of June to claim the federal home-buyer tax credit. A hiccup during the next month could cost a buyer thousands of dollars. “If for some unforeseen reason you end up closing on July 1, you lose out on the tax credit,” says Jerry Lampert, Olympic Area Manager of Republic Mortgage Home Loans in Port Orchard, Washington.

“To qualify for the credit of up to $8,000 for first-time buyers and $6,500 for some repeat buyers, the contract had to be in place by April 30. Eligible buyers now need to close on that contract by June 30. That two-month window is closing rapidly. There’s now just a month left to wrap things up and while that may seem like a long time, it’s not!” Mr. Lampert says.

Any number of delays could push you past June 30. Delays often happen not just due to issues with approving the buyer’s mortgage, but problems also on the seller’s side. To minimize surprises, buyers should schedule the closing at least a week before the deadline, and keep the lines of communication open with all professionals working to get the sale finalized. Make sure everyone knows there’s a tax credit at stake, so all parties understand that time is of the essence.

Another common issue is the large volumes of loans currently moving through the Bank’s Credit and Mortgage company’s pipelines, it’s likely that any mortgage will take longer to process – and potentially delay closing. Above all, schedule the closing far enough before the deadline so that delay’s, like repairs to be made by the seller’s are completed far enough before the deadline and you can close on time.